In the search for finding promising investment opportunities, a method using several factors that joins basic momentum with technical condition can be especially effective. One technique involves looking for stocks that show solid high-growth traits while also showing a good technical arrangement for a possible entry. This tactic searches for companies showing speeding earnings and sales momentum, a sign of high-growth investing, and then adds to that a price pattern indicating the stock is pausing its gains and could be set for its next move up. A stock that appears from such a search is not only basically healthy from a growth view but is also technically set for a possible breakout.
FRANCO-NEVADA CORP (NYSE:FNV) is a distinct company in the mining field, working as a gold-centered royalty and streaming business. Different from standard miners, its business plan gives amplified contact to commodity prices without equal operational danger and capital spending, an element that has helped its solid financial results.
High Growth Momentum Basics
For investors using high-growth momentum plans, the recent financial path of Franco-Nevada is notable. The company's earnings have not just improved but have started a time of marked speeding, a main need for momentum investors looking for fast growth.
- Earnings Per Share (EPS) Growth: The company's trailing twelve-month (TTM) EPS is at $5.59, showing a large year-over-year rise of 71.5%. More notably, the three-month speed is clear. The latest three-month period saw EPS rise 94.7% compared to the same time last year, after earlier three-month growth rates of 78.8% and 65.3%. This clear sequence of speeding is a good sign that growth is not only there but is strengthening.
- Sales Growth Momentum: Revenue growth shares a like account. Sales in the last three-month period rose 86.1% year-over-year, adding to solid earlier periods of 76.9% and 42.0% growth. This steady upward path in top-line increase backs the bottom-line health.
- Analyst Trust and Performance: The basic argument is supported by solid performance against forecasts. Franco-Nevada has passed EPS forecasts in each of the last four three-month periods, with an average beat of 6.1%. Also, analysts have been changing their forecasts upward over the past three months, with next year's EPS forecasts growing by almost 2%. This pairing of passing forecasts and getting upward changes is a standard sign of good momentum that can support more price gains.
Technical Health and Arrangement Condition
While solid basics give the "why" for an investment, technical study can help find the "when." According to the full ChartMill Technical Report for FNV, the stock shows a strong technical picture added to by a hopeful arrangement.
The report gives Franco-Nevada a full Technical Rating of 10 out of 10. This highest mark shows outstanding technical condition, pushed by several parts:
- Both its short-term and long-term paths are strongly good.
- The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are all in rising arrangements.
- It shows solid relative health, doing better than 91% of all stocks in the market over the past year.
Maybe more important for timing an entry is the stock's Arrangement Rating of 7. This mark shows the stock is making a helpful pause pattern after its recent rise. The technical report states that FNV has been trading in a band between $239.22 and $285.67 over the past month and is currently pausing in the middle of this band. This time of lower movement and sideways action lets the stock absorb its gains and can create a base for a new breakout. The report also finds a clear support area just below the present price, near $263.22, which gives a sensible place for a protective stop-loss order.
A Joining Chance
Franco-Nevada Corp shows the kind of chance this joined search method aims to find. The company fits the central idea of high-growth momentum investing by showing forceful, speeding earnings and sales growth, joined with good analyst feeling. At the same time, its price chart shows the stock is in a sure long-term upward path and is currently waiting in a pause, which presents a possible entry point for investors who missed the first rise. The technical health suggests the basic path is sound, while the arrangement condition means the stock could be getting ready for its next move up.
This joined view, where basic momentum meets technical readiness, can help investors concentrate on choices that have both a notable growth story and a chart shape that supports a careful entry.
Interested in finding more stocks that join high-growth momentum with good technical arrangements? You can run this search yourself using the High Growth Momentum Breakout Setups search on ChartMill.
Disclaimer: This article is for information only and does not make financial advice, a suggestion, or a deal or request to buy or sell any securities. The information given on Franco-Nevada Corp (FNV) is based on supplied data and should not be the only base for an investment choice. Investors should do their own separate study and talk with a skilled financial advisor before making any investment choices. Investing in stocks includes danger, including the possible loss of initial funds.